Free Employment Contract Template
Draft a professional employment contract covering compensation, benefits, at-will terms, FLSA classification, restrictive covenants, and termination provisions. Built for US employers and employees.
Primary Duties: Lead and manage the engineering department. Oversee all software development, infrastructure, and technical operations. Define technical strategy and roadmap. Recruit, mentor, and retain top engineering talent. Report directly to the CTO on project milestones and team performance.
Insurance and Retirement:
• Health insurance coverage (medical) in accordance with the Employer's group health plan, subject to eligibility requirements and waiting periods as specified in the plan documents
• Dental and vision insurance coverage under the Employer's group plan
• 401(k) retirement plan participation with an Employer matching contribution of up to 4% of the Employee's eligible contributions, subject to plan terms and vesting schedule
Paid Leave:
• 25 days of paid time off (PTO) per calendar year, accruing on a pro-rata basis
• 10 paid sick days per calendar year
• 11 paid holidays per calendar year as designated by the Employer
Additional Benefits:
Stock options (10,000 shares, 4-year vesting with 1-year cliff), annual performance bonus up to 20% of base salary, professional development budget, commuter benefits
The Employer reserves the right to modify, amend, or terminate any benefit plan or program at any time, in its sole discretion, subject to applicable law.
DTSA Whistleblower Notice (18 U.S.C. Section 1833(b)): Notwithstanding any provision of this Agreement, the Employee shall not be held criminally or civilly liable under any federal or state trade-secret law for the disclosure of a trade secret that: (i) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. An employee who files a lawsuit for retaliation by the Employer for reporting a suspected violation of law may disclose the trade secret to the employee's attorney and use the trade-secret information in the court proceeding, provided the employee files any document containing the trade secret under seal and does not disclose the trade secret except pursuant to court order.
Intellectual Property Assignment: The Employee agrees that all inventions, discoveries, improvements, works of authorship, designs, formulae, algorithms, software programs, and other intellectual property (collectively, "Work Product") conceived, developed, or created by the Employee, either solely or jointly with others, during the term of employment and within the scope of employment or using the Employer's resources, shall be the sole and exclusive property of the Employer. The Employee hereby assigns to the Employer all right, title, and interest in and to such Work Product, including all patents, copyrights, trademarks, and other intellectual property rights therein, in accordance with 17 U.S.C. Section 204(a) (copyright assignment in writing) and 35 U.S.C. Section 261 (patent assignment in writing).
Prior-Invention and State Carve-Out: This assignment shall not apply to any invention that qualifies fully under California Labor Code Section 2870 (and parallel state statutes, including Delaware 19 Del. C. Section 805, Illinois 765 ILCS 1060/2, Kansas K.S.A. Section 44-130, Minnesota Minn. Stat. Section 181.78, North Carolina N.C. Gen. Stat. Section 66-57.1, Utah Utah Code Section 34-39-3, and Washington RCW 49.44.140), meaning inventions developed entirely on the Employee's own time without using Employer equipment, supplies, facilities, or trade-secret information, that do not relate to the Employer's business or actual or demonstrably anticipated research, and that do not result from any work performed for the Employer.
Work-for-Hire: To the extent permitted by law, all Work Product created by the Employee in the course of employment shall be considered "works made for hire" as defined under the United States Copyright Act, 17 U.S.C. Section 101. To the extent any Work Product does not qualify as a work made for hire, the Employee hereby irrevocably assigns all rights in such Work Product to the Employer pursuant to 17 U.S.C. Section 204(a).
Termination for Cause: The Employer may terminate this Agreement immediately without prior notice for "Cause," which shall include but not be limited to: (a) material breach of this Agreement; (b) willful misconduct or gross negligence in the performance of duties; (c) conviction of, or plea of guilty or nolo contendere to, a felony or any crime involving moral turpitude; (d) fraud, dishonesty, or misappropriation of Employer property; (e) violation of Employer policies after written notice and reasonable opportunity to cure; (f) chronic absenteeism or substance abuse affecting job performance.
Additional termination-for-cause conditions: Unauthorized disclosure of trade secrets, material violation of company code of conduct, repeated failure to meet performance objectives after documented performance improvement plan
What Is an Employment Contract?
An employment contract is a formal written agreement between an employer and an employee that defines the terms and conditions of the employment relationship. It establishes the rights and obligations of both parties, covering everything from job responsibilities and compensation to benefits, termination procedures, and post-employment restrictions.
In the United States, most employment is considered at-will, meaning either party can end the relationship at any time. However, a written employment contract provides clarity and legal protection that verbal agreements cannot. It reduces misunderstandings about compensation, benefits, and expectations, and creates a documented record that both parties can reference throughout the employment relationship.
Employment contracts are especially important for executive-level positions, roles involving access to trade secrets or proprietary information, positions with complex compensation structures (stock options, bonuses, commissions), and any role where restrictive covenants such as non-compete or non-solicitation clauses are needed.
What's Covered in This Template
Doxuno's employment contract template includes all essential sections for a comprehensive US employment agreement. Each section can be customized for your specific role, industry, and state requirements.
Employer & Employee Info
Position & Duties
Compensation
Benefits & Leave
Non-Compete Clause
Non-Solicitation
Confidentiality & NDA
At-Will Employment
IP & Work-for-Hire
Severance Terms
Dispute Resolution
Governing Law
How to Create an Employment Contract
Creating a comprehensive employment contract does not need to be complicated. Our template guides you through each section with clear fields and options. Follow these five steps to build a professional agreement tailored to your specific needs.
- 1
Enter Employer and Employee Details
Provide the employer's legal business name, registered address, state of incorporation, and EIN. Then enter the employee's full legal name, address, phone number, and email. These details form the foundation of the contract and identify the parties to the agreement.
- 2
Define Position and Compensation
Specify the job title, department, start date, reporting manager, and work location. Set the compensation type (salary or hourly), amount, pay frequency, and FLSA overtime classification (exempt or non-exempt). Include a description of primary duties and responsibilities.
- 3
Configure Benefits and Leave
Select which benefits to include: health insurance, dental and vision, 401(k) with employer match percentage, and life insurance. Specify the number of PTO days, sick days, and paid holidays per year. Add any additional benefits like stock options or tuition reimbursement.
- 4
Add Restrictive Covenants and Termination Terms
Choose whether to include non-compete, non-solicitation, confidentiality, intellectual property assignment, and work-for-hire clauses. Set the at-will employment status, notice period, severance terms, probationary period, and termination-for-cause conditions. Select the dispute resolution method and governing state.
- 5
Review, Download, and Sign
Review the live preview of your employment contract to ensure all terms are accurate and complete. Download the finished document as a PDF. Both parties should carefully review the final agreement and sign it before the employment start date. Keep signed copies for your records.
Legal Considerations for US Employment Contracts
Employment law in the United States involves a complex mix of federal and state regulations. Understanding the key legal concepts behind employment contracts helps you draft an agreement that protects both the employer and the employee while staying compliant with applicable laws.
This template is provided for informational purposes and does not constitute legal advice. Employment law varies by state and specific circumstances. Consult a licensed attorney for advice tailored to your situation.
Reviewed by legal professionals. The content on this page and the template clauses have been reviewed by licensed attorneys in the United States to ensure accuracy and legal soundness for standard employment contract scenarios.
At-Will Employment and Its Limits
Most U.S. states follow the at-will employment doctrine, which means either the employer or the employee can terminate the relationship at any time without cause. However, a written American employment contract can modify at-will terms by requiring notice periods, specifying termination-for-cause conditions, or providing severance packages. Even in at-will states, terminations cannot be based on discriminatory reasons, retaliation, or violations of public policy.
FLSA Classification Matters
The Fair Labor Standards Act (FLSA) requires employers to correctly classify employees as either exempt or non-exempt. Exempt employees are not entitled to overtime pay and typically hold executive, professional, or administrative roles above a minimum salary threshold. Non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours worked over 40 per week. Misclassification can result in significant penalties, back pay, and legal liability.
State-Specific Restrictions on Non-Competes
Non-compete enforceability varies dramatically by U.S. state. California, Oklahoma, North Dakota, and Minnesota largely prohibit non-compete agreements. Other American states enforce them only if they are reasonable in scope, duration, and geographic limitation. The FTC has also proposed federal rules limiting non-compete clauses. Always verify your state's current laws before including a non-compete provision, and consider alternatives like non-solicitation or confidentiality agreements.
Frequently Asked Questions
Build Your Employment Contract Today
Create a professional U.S. employment contract in minutes. Our American template covers compensation, benefits, restrictive covenants, termination terms, and everything else you need for a solid employer-employee agreement.
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